GBTI unveils invoice financing to boost O&G supply chain

The Guyana Bank for Trade and Industry (GBTI) has launched an Invoice Financing Facility, aimed at addressing liquidity constraints faced by suppliers in the country’s fast-growing oil and gas sector.

The facility will allow registered suppliers with a proven track record to access up to 80 per cent of the value of their validated invoices in advance, with initial eligibility limited to invoices from ExxonMobil Guyana before expanding to prime contractors.

The launch saw participation from key stakeholders in the financial and business sectors.

Speaking at the event, Dr. Ashni Singh, Senior Minister in the Office of the President with Responsibility for Finance and Public Service, welcomed the facility as a long-overdue response to the financing challenges faced by local businesses.

He noted that working capital constraints have been a persistent issue, with companies frequently forced to wait extended periods for payments, limiting their ability to scale operations.

Dr. Singh recalled that the topic was raised during government consultations on the Local Content Bill, where industry stakeholders highlighted the need for receivables to be recognised as collateral for lending.

The facility, he suggested, represents a critical intervention in unlocking liquidity, allowing businesses to bridge the cash flow gap and reinvest in their operations more efficiently.

Beyond the immediate impact on the oil and gas supply chain, Dr. Singh framed the initiative within the broader expansion of private sector credit, which has surged from $260 billion at the end of 2020 to $450 billion by the close of 2024.

Notably, this expansion has been accompanied by a sharp decline in non-performing loans, signaling a more robust and disciplined financial system.

“This facility aligns seamlessly with the pro-business policy environment fostered by the government,” Dr. Singh said, adding: “It also underscores the dynamism of Guyana’s financial sector, which is actively adapting to the evolving needs of the economy and financing an increasing number of bankable projects.”

Dr. Singh also called for GBTI and the wider financial sector to extend similar facilities beyond the oil and gas industry, enabling businesses across various sectors to benefit from more accessible working capital solutions.

The event was attended by Chairman of the Beharry Group of Companies, Suresh Beharry; GBTI’s Chief Executive Officer, Shawn Gurcharran; and Chairman of the Private Sector Commission, Komal Singh—all of whom have been closely involved in shaping Guyana’s evolving business landscape.